MIXUE GROUP's stock plummeted 5.03% during intraday trading on Tuesday, following a regulatory announcement highlighting the company as an example of businesses being impersonated by fraudulent websites.

The Cyberspace Administration of China announced the takedown of 759 impersonation and counterfeit websites in the first half of the year. The report specifically cited the popular bubble tea chain MIXUE GROUP as an example of a company whose brand was being misused by fraudulent sites. These fake websites pose as well-known companies to offer counterfeit services or publish false information, potentially damaging corporate brand reputation and leading to user information leaks and financial losses.

Investor sentiment appeared to be negatively impacted by the association with this cybersecurity crackdown, as the mention of MIXUE GROUP in the context of widespread website impersonation likely raised concerns about brand integrity and potential consumer trust issues.